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Democrat candidate and a republican candidate

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Reference no: EM131756772

Consider a recent Senate election between a democrat candidate and a republican candidate. Each candidate can choose to use positive campaign advertisements or negative campaign advertisements. The payoffs to each candidate in the event of each decision are given in the following table:

1946_democrat candidate and a republican candidate.PNG

Which of the following statements is true?

a. It is a Nash equilibrium for both candidates to use negative advertising.

b. There is only one Nash equilibrium.

c. If the democrat uses positive advertising then the republican is better off using negative advertising.

d. If the democrat uses negative advertising then the republican is better off using positive advertising.

Reference no: EM131756772

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